Warranties on negotiation or transfer of receipt or bill. Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary under the next following section, then unless otherwise agreed he warrants to his immediate purchaser only in addition to any warranty made in selling the goods:
1. That the document is genuine; and
2. That he has no knowledge of any fact which would impair its validity or worth; and
3. That his negotiation or transfer is rightful and fully effective with respect to the title to the document and the goods it represents.
Last modified: February 27, 2006